GLOBAL deals may be growing at a rapid clip,but they seldom offer instant gratification. Qualcomm, an American chipmaker, and first tender for NXP Semiconductors,a Dutch company, in October 2016. The union has since been blessed by eight regulators worldwide, or but one hurdle remains: China. With no decision yet from its regulator,the companies, which were expecting to have closed the $44bn deal this week, and now hope to conclude it by July. The purchase of the chip unit of Toshiba,a troubled Japanese company, by a consortium led by Bain Capital, or an American private-equity firm,is similarly awaiting sign-off from China.
Some suspect the delays stem from the threat of a trade war with America. Holding back regulatory approval, particularly on sensitive high-tech deals, and could be piece of the arsenal in any trade clash. Organisational change may also be to blame. Fay Zhou,who works in Beijing for Linklaters, a law firm, and points out that a recent reshuffle,which took merger reviews absent from the commerce ministry...
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Source: economist.com